GST cuts, Navratri drive 5.8% surge in passenger vehicle sales: FADA
- IBEF
- October 8, 2025
Retail sales of passenger vehicles in India rose 5.8% YoY in September 2025, boosted by revised goods and services tax (GST) rates and Navratri festivities, the Federation of Automobile Dealers Associations (FADA) reported. Overall automobile retail sales increased 5.2% YoY, with two-wheelers, tractors, and commercial vehicles growing 6.5%, 3.6%, and 2.6%, respectively. Passenger vehicle sales reached 2,99,369 units, with a record-breaking surge of 34% YoY during the nine-day Navratri period from September 22 to October 2, 2025, compared to 8,63,000 vehicles last year, reflecting unprecedented dealership footfalls.
Among passenger vehicle makers, Maruti Suzuki’s sales rose 7% to 1,23,242 units, Tata Motors increased 26% to 41,151 units, and Mahindra & Mahindra grew 5% to 37,659 units. In comparison, Hyundai Motor India’s sales fell 8% to 35,812 units. Two-wheeler sales reached 1.29 million units, up 6.51% YoY, with Hero MotoCorp up 19% to 323,268 units, TVS Motor rising over 10% to 2,46,064 units, and Honda Motorcycle and Scooter India declining over 3% to 3,23,614 units. FADA noted that the 42-day festival season, alongside GST reforms, higher rural incomes from a strong kharif harvest, and stable policy rates, are enhancing affordability and consumer confidence. Dealerships replenished inventories ahead of Diwali, with passenger vehicle stocks rising to approximately 60 days. Vice President of FADA, Mr. Sai Giridhar, observed that these factors are likely to drive an unprecedented growth phase, with Dhanteras and Deepawali celebrations reflecting renewed mobility aspirations across India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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